What is Pi Crypto Assets? Is Pi considered a legal means of payment under current laws?

Since 2019, the mobile mining project called Pi Network has attracted more than 50 million “pioneers” around the world who click a purple button every day to accumulate tokens that have not yet been traded on any regulated exchanges, such as Gate. But what is PI in a technical and legal sense? Can Pi Wallet be used as legal currency in stores, e-commerce checkouts, or cross-border money transfers? Below we will shed light on the concept of the Pi cryptocurrency, its current state, and what national regulations (with a focus on Vietnam and the EU/US) think about payments with Pi. ##1. Overview of Pi Cryptocurrency Pi Network is a “social consensus” Layer-1 chain designed by a PhD from Stanford University. Nodes mine through Stellar, inspired by Byzantine fault tolerance, while ordinary users mine on their phones by proving social relationships. Before the open mainnet launch (expected in 2025), Pi tokens only exist in a closed ledger; transfers are limited to in-app wallets, and there is no public on-chain explorer. Therefore, any off-market price quotes on Telegram or Facebook are speculative I-O-Us, not on-chain Pi. ##2. Token Utility—Now and Future

• Current Stage: Pi exists as a credit point in the sandbox; it cannot settle debts or pay for goods outside of the application.

• Vision after the mainnet: Pi will be used to pay transaction fees, reward validators, and serve as a medium of exchange in the dApp market. By then, reputable centralized exchanges like Gate may list Pi trading pairs—pending compliance checks and wallet integrations—so that the real market value can emerge.

##3. Legal Classification of Pi Cryptocurrency | Jurisdiction | Status of Pi as Legal Tender | Key Regulations | | ———— | ———— | ———— | | Vietnam | is not a legal payment tool (Article 4, Decree 101⁄2012 & Resolution 80/2023/QH15). The maximum fine is 1.5 million VND for payment in cryptocurrency. | SBV & Ministry of Justice Statement 2018-2024 | | United States | Considered “convertible virtual currency” and subject to FinCEN anti-money laundering rules. Not regarded as legal tender; payments are treated as taxable exchanges of property. | FinCEN 2013 Guidance; IRS Notice 2014-21 | | European Union | Classified as “crypto assets” under MiCA (effective from 2024). Merchants may accept, but must comply with anti-money laundering/know your customer; still not regarded as legal tender. | Crypto Asset Market Regulation (MiCA) | | China | Has banned all cryptocurrency payments since September 2021. | Notice from the People’s Bank 237 |

##4. Common Misunderstandings That Beginners Should Avoid

• “The fixed exchange rate for Pi’s over-the-counter trading is 314,000 Vietnamese Dong.” Reality: There are no actual trading prices; any quotes are point-to-point speculation.

• “Using Pi to bypass value-added tax or income tax.” Reality: Tax authorities consider cryptocurrency transactions to be taxed at fair market value at the time of discoverable price (e.g., after being listed on Gate).

• “Because Pi has not yet been on-chain, anti-money laundering laws do not apply.” The reality is: once Pi can transfer value, anti-money laundering/know your customer rules will come into effect.

##5. What conditions does Pi need to meet to obtain payment legitimacy?

1. Mainnet Transparency – Public block explorer, fixed token economics, and open-source node code.

2. Exchange Listing – Gate and other regulated centralized exchanges must complete legal opinions classifying Pi as a utility token rather than a security.

3. Regulatory Participation – The Pi Core Team needs to register as a VASP entity or obtain an electronic money license in certain regions.

4. Compliant merchants adopting – Payment gateways integrating Pi must conduct KYC and submit tax reports.

Recommended reading: Latest 2025 PI Network market analysis

##6. How Gate Supports Future Pi Users

• Listing and Liquidity: Once compliant, Gate can list the PI/USDT trading pair, providing a transparent order book.

• Exchange Bridge: Provides one-click migration from in-app Pi to on-chain Pi wallet.

• Staking Pools: Gate Earn may allow users to delegate Pi to validators to earn passive income.

• Education Center: Gate Academy has provided tutorials on KYC, taxation, and wallet security—these are crucial once Pi is tradable.

##7. Practical Advice for Those Who Want to Hold Pi

• Complete KYC in the Pi app as soon as possible; balances without KYC may become invalid after the mainnet.

• Ignore price rumors until Pi is traded on a licensed exchange.

• Diversified holdings: During the waiting period, use USDT or BTC to earn stable returns on Gate.

• Tracking legal updates: The law is evolving; Vietnam’s Digital Asset Sandbox Draft (2025) may reshape cryptocurrency payment regulations.

##Conclusion So, what is PI? Currently, Pi is a closed network test token that promises future utility on a social consensus blockchain. Legally, the Pi cryptocurrency is not recognized as a means of payment in Vietnam, the United States, or the European Union, and using it for business transactions may incur penalties or tax liabilities. It is only after mainnet, transparent pricing, and regulatory clearance – possibly through listing on an exchange like Gate – that Pi can expect wider economic adoption. Until then, treat Pi mining as an experiment, stay compliant, and keep the information updated through reliable channels.

Author: Cinnie, Gate researcher *This article only represents the views of the researcher and does not constitute any investment advice. Investment involves risks, and users should make cautious decisions. *Gate.com reserves all rights to this article. Reprinting of this article is allowed, provided that Gate is cited. In all cases, legal action will be taken for copyright infringement.